GLOSSARY

What is hospital indemnity insurance (HI)?

Updated: November 11, 2024

Hospital indemnity insurance definition and meaning

Hospital indemnity insurance is supplemental medical insurance that pays benefits if you require hospitalization. It pays out a cash benefit that helps cover hospital bills that wouldn’t otherwise be covered by standard health insurance.

 

More about HI

Instead of paying out to the hospital, hospital insurance plans pay directly to the policy holder, allowing them to use the funds in any way they see fit, even if it isn’t directly related to a hospital stay. Some hospital indemnity insurance policies can also include benefits such as emergency room visits and certain outpatient procedures.

Using HI in a sentence

“With a baby on the way, I’m worried my insurance may not cover everything so I’m considering an HI plan to cover any unexpected costs that come up.”

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